ABSTRACT
This chapter demonstrates a simple application of the differential theory of dynamical systems by examining the supply and demand dynamics of a slowly renewable resource. Dynamic models of this type have been developed for the forest sector by J. Randers and H. H. Levack. The traditional market equilibrium models postulate supply as a function of price. Dynamic econometric models have been developed for the forest sector by D.M. Adams and R.W. Haynes and I. Nomura and K. Yukutake. For the case of the timber market, however, the forest owners are not in a position to alter their rate of supply substantially in response to prices because of the lengthy period to maturity and the need to adhere to efficient rotation strategies and well-defined management policies. In reality, the supply of timber from a forest embraces not only that timber which is produced but also that which is available in stock at a given time.
